System for Making Application to Public issue of Debt Securities
Summary
This circular mandates the extension of ASBA facilities and online internet interfaces for public issues of debt securities to streamline application processes. It directs recognized stock exchanges, depositories, merchant bankers, and registrars to implement necessary systems and infrastructure for these new modes of application. The annexure details specific procedures for direct online applications with payment facilities, ASBA-based applications, and non-ASBA applications through intermediaries. Section 2.4 outlines the procedural requirements for handling physical allotment applications, including KYC verification and document submission by intermediaries. Section 3 details the specific roles and responsibilities of issuers, registrars, stock exchanges, lead managers, and collecting banks in public issues of debt securities. These provisions mandate the use of online platforms, escrow accounts, and grievance redressal mechanisms to ensure regulatory compliance.
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Extend ASBA facility to public issues of debt securities; Provide option for subscribing to debt securities through an online internet interface with a facility to make online payment; Apply the timelines for the issue process as provided in SEBI Circular CIR/CFD/DIL/1/2011 dated April 29, 2011 or as notified by SEBI from time to time.
The detailed procedure for providing the above facilities is laid out in Annexure to this circular. The circular shall be applicable with immediate subject to putting in place necessary systems and infrastructure by the stock exchanges.
Comply with the conditions laid down in this circular; Put in place necessary systems and infrastructure for implementation of this circular; Make consequential changes, if any, to the bye-laws of the Exchange as may be applicable and necessary; Communicate to member brokers/ sub-brokers and create awareness amongst them about their roles and responsibilities in such issues.
Comply with the conditions laid down in this circular; Put in place necessary systems and infrastructure for implementation of this circular; Create awareness among issuers and investors about the various modes available for making applications
Issuers shall provide the following options for making application to public issues of debt securities: Direct Applications by using online interface to be provided by Stock Exchanges with Online Payment Facility; Applications through Lead Managers/Syndicate Members/ Sub Syndicate Members / Trading Member of stock exchange(s) using ASBA facility; Applications through Banks using ASBA facility; Application through Lead Manager/Syndicate Member / Sub Syndicate Member / Trading Member of stock exchange(s) without use of ASBA facility; Application through Lead Manager/Syndicate Member/ Sub Syndicate Member/ Trading Member of stock exchange(s) for applicants who intend to hold debt securities in physical form.
Issuer shall provide, through a recognized stock exchange which offers such facility, an online interface enabling direct application by investors to the public issue.
Only investors with demat account shall be permitted to make an application using the online interface.
For compliance with KYC requirements, the interface shall rely on the Depository Participant ID, Beneficiary Owner Account No which shall be validated online from the Depositories.
All online payments shall be routed to the Escrow Account of the issuer.
Upon allotment, the Registrar shall credit securities to the demat account of the applicant and in case of refund, the refund amount shall be credited directly to the investor’s bank account.
Issuers shall offer ASBA mechanism as an alternative method for making an application for public issue of debt securities. However, it shall not be compulsory to make application through ASBA.
In respect of ASBA applications, all existing rules, regulations and procedures as notified by SEBI from time to time shall be followed.
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Source: SecMarx — System for Making Application to Public issue of Debt Securities. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.